<PAGE>
                     U.S. SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                  FORM 10-QSB

(Mark  One)

    [X]  QUARTERLY  REPORT  PURSUANT  TO  SECTION  13  OR  15(d)  OF  THE
         SECURITIES  EXCHANGE  ACT  OF  1934

                  For  the  quarterly  period  ended  SEPTEMBER  30,  2002

    [  ]  TRANSITION  REPORT  PURSUANT  TO  SECTION  13  OR  15(d)  OF  THE
         SECURITIES  EXCHANGE  ACT  OF  1934

         For  the  transition  period  from  _____________  to  ______________.

                         Commission File Number 33-43423

                               NUWAY MEDICAL, INC.

                     Formerly known as (NUWAY ENERGY, INC.)
                          ----------------------------
                     (Exact name of small business issuer as
                            specified in its charter)

              DELAWARE                                       65-0159115
     ---------------------------------                 ---------------------
        (State or other jurisdiction                        (IRS Employer
     of incorporation or organization)                   Identification No.)

                       23461 South Pointe Drive, Suite 200
                             Laguna Hills, CA 92653
                    ----------------------------------------
                    (Address of principal executive offices)

                                 (949) 454-9011
                           ---------------------------
                           (Issuer's telephone number)

     Check  whether  the  issuer  (1)  filed all reports required to be filed by
Section  13  or 15(d) of the Exchange Act during the past 12 months (or for such
shorter  period  that the registrant was required to file such reports), and (2)
has  been  subject  to  such  filing  requirements  for  the  past  90  days.

        Yes  [X]                No  [  ]


Number  of  shares outstanding of each of the issuer's classes of common equity,
as  of September 30, 2002: 16,005,005 shares of common stock, $0.00067 par value
per  share.


<PAGE>



     NUWAY  MEDICAL,  INC.  AND  SUBSIDIARIES
     ----------------------------------------

     REVIEW  REPORT
     --------------

     AS  OF  SEPTEMBER  30,  2002
     ----------------------------
<PAGE>




                      NUWAY MEDICAL, INC. AND SUBSIDIARIES
                      ------------------------------------

                                    CONTENTS
                                    --------






ACCOUNTANT'S  REVIEW  REPORT                                    1

CONSOLIDATED  BALANCE  SHEETS  AS  OF  SEPTEMBER  30,  2002
  AND  DECEMBER  31,  2001                                      2

CONSOLIDATED  STATEMENTS  OF  CHANGES  IN  STOCKHOLDERS'
  EQUITY  FOR  THE  NINE  MONTHS  ENDED  SEPTEMBER  30,  2002
  AND  THE  YEAR  ENDED  DECEMBER  31,  2001                    3

CONSOLIDATED  STATEMENTS  OF  OPERATIONS  FOR  THE  THREE  AND
  NINE  MONTHS  ENDED  SEPTEMBER  30,  2002  AND  2001          4

CONSOLIDATED  STATEMENTS  OF  CASH FLOWS FOR THE NINE MONTHS
   ENDED  SEPTEMBER  30,  2002  AND  2001                       5

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER
 30, 2002 AND DECEMBER  31,  2001                               6-21


<PAGE>


                           ACCOUNTANTS' REVIEW REPORT
                           --------------------------



To  the  Board  of  Directors  of:
NuWay  Medical,  Inc.  and  Subsidiaries


We  have reviewed the accompanying consolidated balance sheets of NuWay Medical,
Inc.  and  Subsidiaries  as  of September 30, 2002, and the related consolidated
statements  of operations, changes in stockholders equity and cash flows for the
nine  months  ended  September  30,  2002, in accordance with the Statements for
Accounting  and  Review  Services  issued by the American Institute of Certified
Public  Accountants.  All  information included in these financial statements is
the  representation  of  the  management  of  NuWay  Medical,  Inc.

A  review  consists principally of inquiries of company personnel and analytical
procedures applied to financial data.  It is substantially less in scope than an
audit in accordance with generally accepted auditing standards, the objective of
which  is  the expression of an opinion regarding the financial statements taken
as  a  whole.  Accordingly,  we  do  not  express  such  an  opinion.

Based  on our review, we are not aware of any material modifications that should
be  made  to  the  accompanying  financial statements in order for them to be in
conformity  with  generally  accepted  accounting  principles.

As  discussed  in  Note  11 certain conditions indicates that the company may be
unable to continue as a going concern.  The accompanying financial statements do
not  include any adjustments to the financial statements that might be necessary
should  the  company  be  unable  to  continue  as  a  going  concern.

The  balance sheet for the year ended December 31, 2001 was audited by us and we
expressed  an  opinion on it that was qualified as to the ability of the company
to  continue as a going concern, in our report dated April 10, 2002, but we have
not  performed  any  auditing  procedures  since  that  date.

Shubitz  Rosenbloom  &  Co.,  P.A.




Miami,  Florida
November  15,  2002
                                        1
<PAGE>


                      NUWAY MEDICAL, INC. AND SUBSIDIARIES
                    ----------------------------------------
                          CONSOLIDATED BALANCE SHEETS
                          -----------------------------
                 AS OF SEPTEMBER 30, 2002 AND DECEMBER 31, 2001
             ------------------------------------------------------

                                     ASSETS
                                     ------
<TABLE>
<CAPTION>

                                                    SEPTEMBER  30,   DECEMBER  31,
                                                        2002              2001
                                                       ------          --------


CURRENT ASSETS
       CASH AND CASH EQUIVALENTS                         $8,902     $   440,827
<S>                                                    <C>
  ACCOUNTS RECEIVABLE, NET OF
   $25,000 OF ALLOWANCE FOR DOUBTFUL ACCOUNTS           174,015         234,054
  INVENTORY                                             150,000         475,291
  NOTES RECEIVABLE OFFICERS AND AFFILIATES,
    CURRENT PORTION                                      59,623               -
  PREPAID EXPENSES AND OTHER CURRENT ASSETS              28,282         156,958
                                                      ---------     -----------
      TOTAL CURRENT ASSETS                              420,822       1,307,130
                                                      ---------     -----------
PROPERTY EQUIPMENT AND  INTANGIBLE ASSETS, NET        6,989,639       2,360,135
                                                      ---------     -----------
OTHER ASSETS
  ACCOUNTS RECEIVABLE LONG-TERM, NET OF ALLOWANCE
    FOR DOUBTFUL ACCOUNTS OF $200,000 IN 2002 AND
   $150,000 IN 2001                                     373,000         450,000
  DEPOSITS                                                   -           26,693
  NOTES RECEIVABLE - OFFICERS AND AFFILIATES
    NET OF CURRENT PORTION                                   -          440,000
  OTHER ASSETS                                           13,790           6,374
                                                      ---------     -----------
           TOTAL OTHER ASSETS                           386,790         923,067
                                                      ---------     -----------
TOTAL ASSETS                                        $ 7,797,251      $4,590,332
                                                      =========      ==========

                      LIABILITIES AND STOCKHOLDERS' EQUITY
                    ---------------------------------------

CURRENT  LIABILITIES
  ACCOUNTS PAYABLE AND ACCRUED EXPENSES             $   773,754      $  985,776
  DEBENTURES PAYABLE                                    150,000       2,400,004
  NOTE PAYABLE SUMMITT VENTURES, INC.                 1,120,000               -
                                                      ---------     -----------
        TOTAL CURRENT LIABILITIES                     2,043,754       3,385,780
                                                      ---------     -----------
COMMITMENTS AND CONTINGENCIES                                 -               -
                                                      ---------     -----------
          TOTAL LIABILITIES                         $ 2,043,754       3,385,780
                                                      ---------     -----------

STOCKHOLDERS' EQUITY
  COMMON STOCK, $.00067 PAR VALUE 100,000,000
    SHARES AUTHORIZED, 16,049,905 SHARES ISSUED
    16,005,005 SHARES OUTSTANDING AND 44,900 SHARES
    HELD AS TREASURY STOCK                              10,752            3,402
  ADDITIONAL PAID-IN CAPITAL                        20,497,722       15,137,225
  ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)    (   595,829)     (   544,539)
  RETAINED EARNINGS (DEFICIT)                      (14,032,144)     (13,264,532)
  TREASURY STOCK, AT COST                          (   127,004)     (   127,004)
                                                      ---------     -----------
          TOTAL STOCKHOLDERS' EQUITY                 5,753,497        1,204,552
                                                      ---------     -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY         $ 7,797,251      $ 4,590,332
                                                    ===========     ===========
</TABLE>


       READ ACCOUNTANTS' REVIEW REPORT AND NOTES TO FINANCIAL STATEMENTS.

                                      2
<PAGE>

                      NUWAY MEDICAL, INC. AND SUBSIDIARIES
                      ------------------------------------
           CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
           ----------------------------------------------------------
                      FOR THE YEAR ENDED DECEMBER 31, 2001
                      ------------------------------------
                 AND FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002
                -------------------------------------------------
<TABLE>
<CAPTION>

                           Common Stock
                         ------------------              Accumulated
                          Number     Par     Additional    Other         Retained             Comprehensive
                            of       Value    Paid-In    Comprehensive   Earnings    Treasury     Income
                          Shares    $.00067    Capital   Income (Loss)   (Deficit)    Stock        (Loss)
                          --------- ------- ----------- -------------- ----------- ---------- --------------
<S>                      <C>        <C>      <C>        <C>            <C>           <C>       <C>
 BALANCE JANUARY 1,
  2001                    4,225,000 $ 2,831 $13,796,612 ($ 560,326)    ($6,612,099)  $  5,235  $       -

 ADJUSTMENT FOR FOREIGN
  CURRENCY TRANSACTIONS           -       -           -     15,787           -            -        15,787

 STOCK ISSUED FOR
  SERVICES                  187,500     126     405,524         -            -            -            -

 REPRICING ON VARIABLE
  OPTION PLAN                    -       -   (  230,460)        -            -            -            -

TREASURY STOCK                   -       -           -          -            -        121,769          -

CONVERSION OF
  DEBENTURES                666,283     446   1,165,549         -            -            -            -

NET (LOSS) FOR THE
  YEAR ENDED
  DECEMBER 31, 2001             -       -         -             -     ( 6,652,433)        -     (6,652,433)
                          --------- ------- ----------- -------------- ----------- ---------- --------------
BALANCE DECEMBER 31,      5,078,783   3,403  15,137,225   (544,539)   (13,264,532)    127,004
  2001

COMPREHENSIVE (LOSS)
  FOR THE YEAR
  ENDED DECEMBER 31,
  2001                                                                                        $(6,636,646)
                                                                                              =============
STOCK ISSUED FOR
  SERVICES                1,368,552     917    644,081         -            -            -           -

CONVERSION OF
   DEBENTURES             1,332,570     893  2,331,705          -            -            -           -

CANCELLATION OF
  WARRANTS                    -          -  (1,659,750)         -       1,659,750         -           -

ADDITIONAL SUBSCRIPTION
  RECEIVABLE              1,000,000     670    249,330          -            -            -           -

STOCK ISSUED FOR
  SOFTWARE                  670,000     447    299,553          -            -            -           -

STOCK ISSUED FOR
  ASSETS OF MED-
  WAREHOUSES, INC.        6,600,000   4,422  3,495,578

ADJUSTMENT FOR FOREIGN
  CURRENCY TRANSACTIONS       -          -          -    (  51,290)                            (   51,290)

NET (LOSS) FOR THE NINE
  MONTHS ENDED SEPTEMBER
  30, 2002                    -          -          -           -     ( 2,427,362)         -   (2,427,362)
                          --------- ------- ----------- -------------- ----------- ---------- --------------
BALANCE SEPTEMBER 30,
  2002                   16,049,905 $10,752 $20,497,722  ($595,829)   $(14,032,144) $ 127,004
                         ========== ======= =========== ============== ============ ==========
COMPREHENSIVE INCOME
  (LOSS) FOR THE NINE
  MONTHS ENDED SEPTEMBER 30
   $(2,478,652)
                                                                                             ==============
</TABLE>

       Read accountant`s review report and notes to financial statements.
                                       3

<PAGE>

                      NUWAY MEDICAL, INC. AND SUBSIDIARIES
                      ------------------------------------
                        CONSOLIDATED STATEMENTS OF OPERATIONS
                        -------------------------------------
<TABLE>
<CAPTION>



                                      THREE  MONTHS  ENDED      NINE  MONTHS  ENDED
                                      --------------------      -------------------
                                          SEPTEMBER  30,           SEPTEMBER  30,
                                          -------------            --------------

                                        2002      2001         2002        2001
REVENUE
<S>                                   <C>       <C>          <C>         <C>
   RENTAL INCOME                      $62,318   $109,034     $245,658     $374,792
   SALES OF CIGARS                     39,322     50,995       85,230      122,770
   OIL SALES                           83,965          -      298,527            -
                                      -------   --------     --------     --------
       TOTAL REVENUES                 185,605    160,029      629,415      497,562
                                      -------   --------     --------     --------
COST AND EXPENSES

   SELLING, GENERAL & ADMINISTRATION  559,100  1,343,890    1,634,003    2,688,076
DEPRECIATION, DEPLETION AND
 AMORTIZATION                          84,346     36,686      318,020       87,555
   COST OF CIGAR SALES                321,994     34,628      348,908       77,944
   EXPENSES ASSOCIATED WITH
    STOCK ISSUED FOR SERVICES         295,500          -      645,000            -
   OIL AND GAS LEASE OPERATING COST     33,656         -       104,392           -
   SITE RESTORATION COSTS                3,851         -        14,020           -
   IMPAIRMENT CHARGES                        -         -             -     347,071
                                      -------   --------     --------     --------
       TOTAL COST AND EXPENSES       1,298,447  1,415,204    3,064,343   3,200,646
                                      -------   --------     --------     --------
OPERATING INCOME (LOSS)             (1,112,842)(1,255,175)  (2,434,928)  (2,703,084)
                                      -------   --------     --------     --------
OTHER INCOME (EXPENSES)

   INTEREST INCOME                          92     23,352        7,566      125,129
                                       -------   --------     --------     --------
          NET OTHER INCOME (EXPENSES)       92     23,352        7,566      125,129
                                      -------   --------     --------     --------
INCOME (LOSS) BEFORE INCOME TAXES  (1,112,750) (1,231,823) (2,427,362)   (2,577,955)
                                      -------   --------     --------     --------
INCOME TAXES (PROVISION) BENEFIT            -           -           -             -

NET INCOME (LOSS)                 ($1,112,750)($1,231,823)($2,427,362)  ($2,577,955)
                                   ==========   =========   =========     ==========
EARNINGS (LOSS) PER COMMON SHARE
  AND COMMON SHARE EQUIVALENT BASIC
   AND FULLY DILUTED

 COMMON SHARE EQUIVALENT
   OUTSTANDING                     9,999,062    4,214,683  7,437,069      4,219,294
                                   ==========   =========   =========     ==========
       NET INCOME (LOSS)
         PER SHARE              $  (     .11) $ (     .29)$(      .33)   $(     .61)
                                   ==========   =========   =========     ==========

</TABLE>




       Read accountant`s review report and notes to financial statements.

                                      4
<PAGE>


                      NUWAY MEDICAL, INC. AND SUBSIDIARIES
                      ------------------------------------
                        CONSOLIDATED STATEMENTS OF CASH FLOWS
                        -------------------------------------
                FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
                -----------------------------------------------------
<TABLE>
<CAPTION>

                                                                                      2002       2001
                                                                                  ---------- ------------
CASH FLOWS FROM OPERATING ACTIVITIES
<S>                                                                              <C>         <C>
  NET INCOME (LOSS)                                                              ( 2,427,362) ($2,577,955)
  ADJUSTMENTS TO RECONCILE NET INCOME
   TO NET CASH PROVIDED BY OPERATING ACTIVITIES:
     DEPRECIATION, DEPLETION AND AMORTIZATION                                        318,020       87,555
     ISSUANCE OF STOCK FOR SERVICES & INTEREST                                       727,582            -
     ASSET IMPAIRMENT CHARGES                                                              -      347,071
     (GAIN) LOSS ON SALE OF ASSET                                                          -       14,936
     AMORTIZATION OF DEFERRED DEBT ISSUANCE COSTS                                          -       48,370

    CHANGES IN ASSETS - (INCREASE) DECREASE:
    ACCOUNTS RECEIVABLE                  137,039
     PREPAID EXPENSES AND OTHER CURRENT ASSETS                                        128,676       4,377
     INVENTORY OF CIGARS                                                              325,291      23,700
    CHANGES IN LIABILITIES - INCREASE (DECREASE):
     ACCOUNTS PAYABLE AND ACCRUED EXPENSES                                       (   212,002)     500,550
                                                                                 ------------ ------------
    NET CASH PROVIDED BY (USED IN) OPERATING
      ACTIVITIES                                                                 ( 1,002,756  ( 1,372,679)
                                                                                 ------------ ------------

CASH FLOWS FROM INVESTING ACTIVITIES:
  INVESTMENT IN OIL AND GAS VENTURE                                                        -  (1,530,582)
  PROCEEDS ON SALE OF FIXED ASSETS                                                    33,802     152,561
  FIXED ASSETS INCREASE AND OTHER                                                (    61,335) (   44,894)
  OTHER ASSETS                                                                        19,277  (  112,432)
                                                                                 -----------  -----------
    NET CASH PROVIDED BY (USED IN)INVESTING
    ACTIVITIES                                                                   (     8,256)  (1,535,347)
                                                                                 ------------  ----------

CASH FLOWS FROM FINANCING ACTIVITIES
  PROCEEDS ON SALE OF SECURITIES                                                     250,000            -
  ACQUISITION OF TREASURY STOCK                                                            -   (  120,000)
  REDUCTION OF STOCKHOLDER LOANS                                                     380,377            -
                                                                                 ----------- ------------
    NET CASH (USED IN) FINANCING ACTIVITIES                                          630,377   (  120,000)
                                                                                 ----------- -------------

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND
  CASH EQUIVALENTS                                                                (   51,290)      40,354
                                                                                 ------------ -----------

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                             (   431,925) ( 2,987,672)

CASH AND CASH EQUIVALENTS - BEGINNING                                                440,827    4,422,715
                                                                                 ------------ ------------
CASH AND CASH EQUIVALENTS - ENDING                                                    $8,902  $ 1,435,043
                                                                                 ============ ============
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION:


CASH PAID DURING THE PERIOD FOR:
  INTEREST                                                                       $         -  $     6,460

  INCOME TAXES, FOREIGN                                                          $         -  $         -


CONVERSION OF DEBENTURES TO CAPITAL                                              $ 2,250,004  $         -
                                                                                 ============ ============
ISSUANCE OF STOCK FOR CAPITALIZED ASSETS
  SOFTWARE COSTS                                                                 $    300,000 $         -
                                                                                 ============ ============
  LICENSE RIGHTS MED-WIRELESS, INC.                                              $  4,620,000 $         -
                                                                                 ============ ============
INCREASE OF DEBT FOR MED-WIRELESS LICENSE RIGHTS                                 $  1,120,000 $         -
                                                                                 ============ ============

</TABLE>


        Read accountant`s review report and notes to financial statement.
5
<PAGE>

                      NUWAY MEDICAL, INC. AND SUBSIDIARIES
                      ------------------------------------
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
                 AS OF SEPTEMBER 30, 2002 AND DECEMBER 31, 2001
                 ----------------------------------------------

NOTE  1.   SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES
--------   ----------------------------------------------

     A     BUSINESS  AND  ORGANIZATION
           ---------------------------

          In  July  2002  Nuway  Energy,  Inc. (formerly known as Latin American
          Casinos,  Inc.)  changed  its  name to Nuway Medical, Inc. The company
          intends  to  change  its  focus to pursue opportunities in the Medical
          Technology  and  Health-Care  services  business.  In  that regard the
          company  is  considering  divesting  itself of the gaming industry and
          cigar  operations  in  the  future. At present no firm committment has
          been  made  to  discontinue  these  operations.  In September 2002 the
          company  filed  Schedule  14c  information  with  the  Securities  and
          Exchange  Commission.  The  document  indicates  a  majority  of  the
          stockholders  concurred  with  among  other  items, the corporate name
          change, the approval of the exclusive license and assignment agreement
          with Med Wireless, Inc., as discussed below, and the approval to amend
          the  corporate  charter  to  increase the authorized common stock from
          15,000,000 shares to 100,000,000 shares, and to authorize the issuance
          of  up  to 25,000,000 shares of preferred stock, whose terms are to be
          defined  at  the time of their issuance. NuWay Medical, Inc. (formerly
          Nuway  Energy,  Inc.)  is  a  Delaware  corporation  incorporated  on
          September  19,  1991.

          In  1994,  the  Company  entered  in  the  gaming and casino business,
          primarily  in  Peru  and other Latin American countries renting casino
          type  slot  machines.

          In  1994,  the  Company  formed  a  Peruvian  subsidiary; in 1995, the
          Company  formed a Colombian subsidiary and in 1997, the Company formed
          a  subsidiary  in Nicaragua that are in the gaming and casino business
          in  Latin America (See Note 9C). The operations include the renting of
          casino  slot  machines  as  well  as  other gaming equipment to casino
          operators.  The Company had originally acquired in total approximately
          8,000  slot  machines  and  related  parts.  It had been the Company's
          policy  to  capitalize  all  cost  necessary to place the equipment on
          rental  which included transportation, duty and refurbishing costs. In
          year  2001,  as  a  result  of  deteriorating  market  conditions  and
          obsolescence  of  the  slot  machines  and  a  mandate by the Peruvian
          Government, a valuation of all gaming equipment was performed and as a
          result  as further discussed in note 2, an asset impairment charge was
          recorded.

          In  September  1997, the Company incorporated World's Best Rated Cigar
          Company (World) as a wholly owned subsidiary of NuWay Medical, Inc. to
          distribute quality cigars. Is was originally intended that the Company
          would  market premium cigars at "off price", and would acquire quality
          cigars from six South American producers and market them through large
          retail  chains, initially on a consignment basis. The cigar operations
          have  been  slower than originally anticipated and as at September 31,
          2002,  the  Company had expended approximately $1,186,000 in regard to
          the  cigar  operations.  Such  expenditures  have been included in the
          accompanying  consolidated  financial  statements  as  follows:
<TABLE>
<CAPTION>



<S>                                                  <C>
      CASH AND CASH EQUIVALENTS                      $                               -
      ACCOUNTS RECEIVABLE                                                            -
      PREPAID AND OTHER CURRENT ASSETS                                               -
      INVENTORY                                                                150,000
      FIXED ASSETS, NET OF ACCUMULATED DEPRECIATION                             30,000
      OTHER ASSETS                                                                   -
      AGGREGATE ACCUMULATED DEFICIT                                          1,006,000
                                                     ---------------------------------

        TOTAL INVESTMENT                             $                       1,186,000
                                                     =================================
</TABLE>




                        Read accountant`s review report.
                                      6
<PAGE>

                      NUWAY MEDICAL, INC. AND SUBSIDIARIES
                      ------------------------------------
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
                 AS OF SEPTEMBER 30, 2002 AND DECEMBER 31, 2001
                 ----------------------------------------------

NOTE  1.  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONTINUED)
--------  ----------------------------------------------

          In  the  year  2001,the  Company incorporated NuWay Resources, Inc., a
          Nevada  Corporation  and  NuWay  Resources of Canada, Ltd., a Canadian
          Company,  both  wholly owned subsidiaries of NuWay Medical, Inc. These
          corporations  were  formed  to pursue opportunities in the oil and gas
          exploration  industry, with its principal activity in the exploration,
          development  and  product of oil and gas properties in Western Canada.

          In  June,2002,  the  Company  acquired  medical  software  from Camden
          Holdings,  Inc.,  an  affiliate, for 670,000 shares of stock valued at
          approximately  $.45  per  share.  That  affiliate  subscribed  to  an
          additional  1,000,000  shares of stock at $.25 per share. In July 2002
          the  company acquired fifteen-year licensing rights from Med Wireless,
          Inc. a company affiliated to a principal stockholder of NuWay Medical,
          Inc.  The  acquisition obligated the company to issue 6,600,000 shares
          of  stock  valued at $3,500,000 plus assumed a note payable to Summitt
          Ventures,  Inc  for  $1,120,000.  The  note requires monthly interest,
          computed  at  10%  per annum. The note and all accrued interest is due
          June  15, 2003. The licensing agreement includes software applications
          that  allow  high  resolution  transfer  of diagnostic quality images,
          including  Ultra  Sound, over the Internet and Internet network. As of
          September  30,  2002  the  company has not commenced operations in the
          medical  imaging  business.

     B    PRINCIPLES  OF  CONSOLIDATION
          -----------------------------

          The  accompanying  consolidated  financial  statements  include  the
          accounts  of  the  Company  and  its  wholly-owned subsidiaries, Latin
          American  Casinos Del Peru S.A. a Peruvian Corporation, Latin American
          Casinos  of Colombia LTDA, a Colombian Corporation, World's Best Rated
          Cigars,  Inc.,  Nuway  Resources, Inc., a Nevada Corporation and Nuway
          Resource  of  Canada,  Ltd.,  a  Canadian  Company.

          All material inter-company transactions, balance and profits have been
          eliminated.

     C    PROPERTY  AND  EQUIPMENT
          ------------------------

          Property and Equipment are stated at cost. Depreciation is provided on
          accelerated  and straight-line methods over the estimated useful lives
          of  the  respective  assets.  Maintenance  and  repairs are charged to
          expense  as incurred; major renewals and betterment's are capitalized.
          When  items  of property or equipment are sold or retired, the related
          cost  and  accumulated  depreciation are removed from the accounts and
          any  gain  or  loss is included in the results of operations. Whenever
          there  is a change in events or circumstances in the business economic
          environment  or  a significant change in the volume of operations, the
          Company  performs  an  impairment  analysis by comparing the estimated
          future  undiscounted  cash  flows  projected  to  be  generated by the
          assets,  and  if  they  are  less  than  the  asset carrying amount an
          impairment  charge  is  recorded to reduce the assets to its estimated
          fair  value.  In  addition, the Company periodically reviews the costs
          associated  with undeveloped oil and gas properties and mineral rights
          to  determine whether they are likely to be recovered, when such costs
          are  not  likely  to  be  recovered, such costs are transferred to the
          depletable  pool  of  oil  and  gas  cost.







                        Read accountant`s review report.
7
<PAGE>

                      NUWAY MEDICAL, INC. AND SUBSIDIARIES
                      ------------------------------------
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
                 AS OF SEPTEMBER 30, 2002 AND DECEMBER 31, 2001
                 ----------------------------------------------

NOTE  1.   SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONTINUED)
--------   ----------------------------------------------

     D     OIL  AND  GAS  OPERATIONS
           -------------------------

          Substantially  all  of  the  Company's  exploration  and  development
          activities  related  to  oil and gas are conducted jointly with others
          and  accordingly  the  financial statements reflect only the Company's
          proportionate  interest  in  such  activities.

          The  net  carrying  cost  of  the  Company's oil and gas properties in
          producing  cost centers is limited to an estimated recoverable amount.
          This  amount  is  the  aggregate  of  future  net revenues from proved
          reserves  and  the  costs of undeveloped properties, net of impairment
          allowance,  less  future  general  and administrative costs, financing
          costs  and  income  taxes.  Future  net  revenues are calculated using
          year-end  prices  that  are not escalated or discounted. For Canadian,
          GAAP  future  net  revenues  are  undiscounted, whereas for U.S. GAAP,
          future  net  revenues are discounted at 10%. In conducting its ceiling
          test  evaluation,  the  Company followed generally accepted accounting
          standards  which  provided  for  a  two-year exemption from write-down
          where  the  purchase  price of reserves had been determined on a basis
          which  provided a higher amount than the ceiling test value, and where
          the  excess  was not considered to represent a permanent impairment in
          the  ultimate  recoverable  amount.  If the two-year exemption had not
          been used, the Company would have taken a write-down of $692,000 based
          on  prices  at  September  30, 2001 of $19.64 per bbl of heavy oil and
          $2.68  per  Mmbtu  of  gas. The Company qualified for the exemption in
          connection  of  its  acquisitions of resource properties in August and
          September  of  2001.

          Ceiling  test  calculations  are based on the Company's reserve report
          prepared  annually,  on  December  31,  by  McDaniel  &  Associates
          Consultants, LTD. and do not reflect current prices which at September
          30, 2002 were $19.64 per bbl of heavy oil and $2.68 per mmbtu for gas.

          Gains  or  losses  are  not recognized upon disposition of oil and gas
          properties  unless  crediting  the  proceeds against accumulated costs
          would  result  in  a  change  in the rate of depletion of 20% or more.

          Future site restoration cost for working interest properties are being
          provided  on  a  unit  of  production basis. The provision is based on
          current  cost  of  complying  with  existing  legislation and industry
          practice  for  site restoration and abandonment. The estimated cost of
          abandoning  carried  interest  wells  are  not included in future site
          restoration  cost.  This  cost  would  be paid by the working interest
          partners  and  charged  to  the  carried  interest  account.


                        Read accountant`s review report.
8
<PAGE>

                      NUWAY MEDICAL, INC. AND SUBSIDIARIES
                      ------------------------------------
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
                 AS OF SEPTEMBER 30, 2002 AND DECEMBER 31, 2001
                 ----------------------------------------------

NOTE  1    SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONTINUED)
-------    ----------------------------------------------

     E     REVENUE  RECOGNITION
           --------------------

          Revenue  is  recognized  monthly on the rental of slot machines as the
          slot  machines  are placed in service. Typical rental arrangements for
          slot  machines are for one year or less in duration with constant rent
          income  earned  over  the  life  of  the lease. As a general rule, the
          Company  does not incur any significant direct cost with the inception
          of  the  lease.  All  leasing  expense,  payroll  and  maintenance  of
          equipment  are  charged to operations as incurred. Revenue on the sale
          of  cigars  are recorded when customer orders are shipped. The cost of
          cigar  sales  represents  the  direct  cost  of  the product sold. The
          Company  recognizes  revenue  on  its  working  and  royalty  interest
          properties  from  the  production of oil and gas in the period the oil
          and  gas  are  sold,  net  of  royalty  payments  due.

          In  regard  to  the oil and gas operations, revenue on its working and
          royalty  interest  properties  is recognized in the period the oil and
          gas are sold. Revenue under carried interest agreements is recorded in
          the  period  when the net proceeds become receivable and collection is
          reasonably assured. Under the carried interest agreements, the Company
          records  oil  and  gas  revenues  net  of  operating  and capital cost
          incurred  by  the  working  interest  participants.  The  time the net
          revenues  become  receivable  and  collection  is  reasonably  assured
          depends on the terms and conditions of the relevant agreements and the
          practices  followed by the operator. As a result, net revenues may lag
          the  production.

     F    STATEMENT  OF  CASH  FLOWS
          --------------------------

          For  purposes  of  this  statement,  the  Company considers all liquid
          investments  purchased  with  an  original maturity of three months or
          less  to  be  cash  equivalents.

     G    INCOME  (LOSS)  PER  COMMON  SHARE
          ----------------------------------

          Basic  earnings  per  common  share  and common share equivalents were
          computed  by dividing net income (loss) by the weighted average number
          of shares of common stock outstanding during the period. Fully diluted
          earnings  per  share  was  calculated based on the assumption that the
          increase  in  the  number  of  common  shares  assumed  outstanding on
          conversion  of  debentures  and  excise  of  options  and warrants are
          reduced  by  the  number  of  common  shares  that  are  assumed to be
          purchased  with  the  proceeds  from  the  exercise of the options and
          warrants.  During  2001  and  2002  all  warrants,  stock  options and
          underwriter's options (Notes 4, 5, 6) were anti-dilutive, and excluded
          from  the  computation  of basic and diluted earning (loss) per share.

          In  the  future,  if all the convertible debt, warrants, stock options
          and  underwriting options were exercised or converted, future earnings
          per  share could be diluted by 2,713,359 additional shares as follows:
<TABLE>
<CAPTION>



<S>                                            <C>
        PUBLICLY TRADED OPTIONS                1,725,000
        PRIVATE WARRANTS                         300,000
        INVESTMENT BANKER WARRANTS               225,000
        INCENTIVE STOCK OPTIONS                  372,500
        DEBENTURES INCLUDING ACCRUED INTEREST     90,857
                                               ---------

                                               2,713,357
                                               =========
</TABLE>



                        Read accountant`s review report.
                                       9
<PAGE>

                      NUWAY MEDICAL, INC. AND SUBSIDIARIES
                      ------------------------------------
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
                 AS OF SEPTEMBER 30, 2002 AND DECEMBER 31, 2001
                 ----------------------------------------------

NOTE  1    SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONTINUED)
-------    ----------------------------------------------

     H     SIGNIFICANT  CONCENTRATION  OF  CREDIT  RISK
           --------------------------------------------

          The  Company  has concentrated its credit risk for cash by maintaining
          deposits  in  banks  located  within  the  same geographic region. The
          maximum  loss  that  would  have resulted from risk totaled $9,000 and
          $238,000 as of September 30, 2002 and December 31, 2001 for the excess
          of  the deposit liabilities reported by the bank over the amounts that
          would  have  been  covered  by  federal  deposit  insurance.

     I    USE  OF  ESTIMATES
          ------------------

          The  preparation  of financial statements in conformity with generally
          accepted  accounting  principles requires management to make estimates
          and  assumptions  that  affect  the  reported  amounts  of  assets and
          liabilities,  the  disclosure  of contingent assets and liabilities at
          the date of the financial statements, and revenues and expenses during
          the period reported. Actual results could differ from those estimates.
          Estimates  are  used  when  accounting  for  uncollectible  accounts
          receivable,  obsolescence,  equipment  depreciation  and amortization,
          taxes,  among  others.

     J    FOREIGN  CURRENCY  TRANSLATION
          ------------------------------

          For  most  international  operations,  assets  and  liabilities  are
          translated  into U.S. dollars at year-end exchange rates, and revenues
          and  expenses  are  translated  at  average  exchange rates prevailing
          during  the year. Translation adjustments, resulting from fluctuations
          in  exchange  rates  are  recorded  as  a  separate  component  of
          shareholders'  equity,  as  other  comprehensive  income  (loss).

     K    INVENTORIES
          -----------

          Inventory  of  cigars  and related material are stated at the lower of
          average  cost  or market. The Company has in excess of one-year supply
          of  cigar  inventory  but  believes  it  can sell the entire inventory
          within  one year. In that regard, the company sold all its cigars that
          were  being  stored  in South America aggregating $300,000 in one bulk
          sale and recorded a loss of $150,000 on the sale. Based on anticipated
          future sale the company recorded an additional inventory write down on
          the  remaining  inventory  of  $120,000 to adjust the inventory to the
          lower  of  cost  or  realizable  market  value.

     L    VALUATION  OF  COMPANY'S  STOCK  OPTIONS  AND  WARRANTS
          -------------------------------------------------------

          As permitted under the Statement of Financial Accounting Standards No.
          123  (SFAS  No.  123),  Accounting  for  Stock-Based Compensation, the
          Company  accounts  for  its  stock-based  compensation to employees in
          accordance  with  the  provisions of Accounting Principles Board (APB)
          Opinion  No.  25,  Accounting  for Stock Issued to Employees. As such,
          compensation  expense  is  recorded  on  the date of grant only if the
          current  market  price  of  the underlying stock exceeded the exercise
          price.  Certain  pro-forma net income and EPS disclosures for employee
          stock  options  grants are also included in the notes to the financial
          statements  as  if the fair value method as defined in SFAS No 123 had
          been  applied.  Transactions  in equity instruments with non-employees
          for  goods  or  services  are  accounted for by the fair value method.


                        Read accountant`s review report.
                                      10
<PAGE>

                      NUWAY MEDICAL, INC. AND SUBSIDIARIES
                      ------------------------------------
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
                 AS OF SEPTEMBER 30, 2002 AND DECEMBER 31, 2001
                 ----------------------------------------------

NOTE  1    SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONTINUED)
-------    ----------------------------------------------

     M     ADVERTISING
           -----------

          The Company expenses all advertising cost as incurred. Included in the
          statement  of  operations  is  approximately  $2,600  and  $100,000
          advertising  expense  charged  to  operations for the six months ended
          September  30,  2002  and  2001,  respectively.  Substantially  all
          advertising  expenses  incurred  in  year  2001  were paid with barter
          transactions  at  published costs. Barter transactions were terminated
          in  2001.

NOTE  2.  PROPERTY  AND  EQUIPMENT
--------  ------------------------
<TABLE>
<CAPTION>


          PROPERTY  AND  EQUIPMENT  ARE  SUMMARIZED  AS  FOLLOWS:

                                            SEPTEMBER  30, DECEMBER31,
2001
                                            -------------  ------------
<S>                                        <C>             <C>

    LICENSING AGREEMENT FROM
      MED WIRELESS, INC. (SEE NOTE 1)       $4,620,000       $        -
    SOFTWARE COSTS (SEE NOTE 1)                300,000                -
    EXPLORATION AND DEVELOPMENT EQUIPMENT      994,185          933,624
    OIL & GAS PROPERTIES AT COST               757,928          752,067
    LAND & BUILDING (SEE NOTE 10)               35,000           35,000
    RENTAL EQUIPMENT(SEE NOTE 10)              903,115        1,039,008
    FURNITURE, FIXTURES & OFFICE EQUIPMENT     139,855          151,818
    TRANSPORTATION EQUIPMENT                         -            2;862
                                            ----------     ------------

                TOTAL                        7,750,083        2,914,379

    LESS:  ACCUMULATED DEPRECIATION            760,444          554,244
                                            ----------     ------------

    PROPERTY AND EQUIPMENT - NET           $6,989,639      $2,360,135
                                           ===========     ============

    THE ESTIMATED USEFUL LIVES
     OF PROPERTY AND EQUIPMENT,
     ARE AS FOLLOWS:

      RENTAL EQUIPMENT                                    5-7 YEARS
      SPECIAL USE BUILDINGS                                10 YEARS
      COMMERCIAL BUILDINGS                                 30 YEARS
      FURNITURE, FIXTURES AND OFFICE EQUIPMENT            5-7 YEARS
      TRANSPORTATION EQUIPMENT                              5 YEARS
</TABLE>



          The licensing agreement and software cost have not been depreciated or
          amortized  inasmuch  as  the  operations  have  not  commenced.

          Depletion  is  provided  on cost accumulated in producing cost centers
          including  production  equipment  using the unit of production method.
          For  purposes  of  the depletion calculation, gross proved oil and gas
          reserves  as  determined  by  outside  consultants  are converted to a
          common  unit  of  measure  on  the basis of their approximate relative
          energy  content.

          Included  in  Rental  Equipment  is approximately $70,000 of parts and
          supplies  purchased  or  obtained  from  other  machines  previously
          disassembled for parts. In year 2001, as a result of market conditions
          and  obsolescence,  the Company reviewed all costs associated with its
          gaming  equipment  and  recorded an impairment charge of $2,789,000 on
          gaming  equipment.


                        Read accountant`s review report.
                                           11

<PAGE>
                      NUWAY MEDICAL, INC. AND SUBSIDIARIES
                      ------------------------------------
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
                 AS OF SEPTEMBER 30, 2002 AND DECEMBER 31, 2001
                 ----------------------------------------------

NOTE  2.  PROPERTY  AND  EQUIPMENT  (CONTINUED)
--------  ------------------------

          Rent  expense  for  the  nine months ended September 30, 2002 and 2001
          were  $130,000  and  $167,000,  respectively.

NOTE  3.  NOTES  RECEIVABLE  -  STOCKHOLDERS  AND  AFFILIATES
--------  ---------------------------------------------------

          In  October,  2001  the  Company  advanced  loans  to  two  companies
          controlled  respectively  by  the  then  Chief  Operating and Economic
          Officer  in the aggregate amount of $400,000 which was due in October,
          2006.  Interest  on  these notes are payable quarterly and computed at
          the  prime  rate  plus 1%. These notes have been reduced to $19,623 at
          September  30,  2002  and  are  anticipated  to  be either repaired or
          considered compensation by year-end. Accordingly these notes have been
          classified  as  a  current  asset  in  the  accompanying  financial
          statements.

          In  June,  2001  the Company advanced $40,000 to another officer. This
          note  is due on the earlier of the officer's termination or June, 2002
          and  is  repayable as reductions of severance arrangements included in
          his  employment  contract (See Note 9B). Interest is payable quarterly
          and  calculated  at  the  prime  rate  plus 1%. In September, 2002 the
          officer  terminated  his  services  and  an  accrual  was recorded for
          severance  pay  of  $40,000,  as  further  discerned  in  Note  9B.

NOTE  4.  WARRANTS  AND  OPTIONS  AND  STOCK  ISSUED  FOR  SERVICES
--------  ---------------------------------------------------------

          As  of  June 30, 2002, the Company has outstanding 1,725,000 five year
          publicly  traded  warrants  that  were issued as part of the Company's
          initial  public offering to purchase one share of the Company's common
          stock  at an exercise price of $3.00 by December 11, 2003. In December
          2000,  the board of directors authorized the issuance of an additional
          3,300,000  private five year stock warrants to acquire common stock at
          $1.75 per share. 1,500,000 of the issuance of the private warrants and
          200,000  shares  of  restricted stock were issued to executives of the
          corporation. Compensation was recorded on the arrangement equal to the
          market value of he restricted stock, $350,000. The remaining warrants,
          1,800,000  were  issued in connection with service rendered by several
          individuals  and  entities  and  were  valued  at $1,991,700 using the
          Black-Scholes  Options  pricing  model assuming a 5% interest rate and
          high  volatility  to  underlying  stock prices. The 1,500,000 warrants
          issued  to  the  executives  were  valued  at  the  intrinsic value in
          accordance  with  APB  25  at  $1,620,000. (See Note 6). In year 2002,
          3,000,000  of  the  3,300,000  warrants  issued  in  year  2000,  were
          cancelled and approximately $1,660,000 of previously recorded expenses
          that  was recorded in year 2000 was adjusted against retained earnings
          and  paid-in-capital,  accordingly.

          In  year  2001,  the  Company issued or was committed to issue 187,500
          shares  of  stock  for  services.  Expenses were recorded based on the
          value  of  the  stock,  which ranged from $2.51 per share to $1.98 per
          share, for a total consideration of $405,524. In year 2002, a total of
          1,368,552  shares of stock were issued for services. These shares were
          recorded at the closing price at date of issue, which ranged from $.25
          to  $.55  and  aggregated  $645,000.


                        Read accountant`s review report.
                                      12
<PAGE>

                      NUWAY MEDICAL, INC. AND SUBSIDIARIES
                      ------------------------------------
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
                 AS OF SEPTEMBER 30, 2002 AND DECEMBER 31, 2001
                 ----------------------------------------------

NOTE  5.  INVESTMENT  BANKER  WARRANTS
--------  ----------------------------

          Effective  June  5,  1998,  the  Company contracted with an investment
          banker  to  provide on a non-exclusive basis to the Company assistance
          in  possible  mergers,  acquisitions and internal capital structuring.
          The  duration  of the contract is for five years. In consideration for
          these  services, The Company granted warrants to purchase an aggregate
          of  225,000  shares of common stock at the closing bid price of $1.875
          as  of  June  5,  1998,  which  can be exercised through June 5, 2003.
          Effective  February  8,  2000,  the  Board  of  Directors  reduced the
          exercise  price  to $1.06, which was the closing price of the stock at
          that  date.  These  warrants  are  fully  vested.

NOTE  6.  INCENTIVE  STOCK  OPTION  PLAN
--------  ------------------------------

          On June 13, 1994, the Board of Directors adopted the 1994 Stock Option
          Plan  in which the aggregate number of shares for which options may be
          granted  under the Plan shall not exceed 1,000,000 shares. The term of
          each option shall not exceed ten years from the date of granting (five
          years  for  options  granted  to employees owning more than 10% of the
          outstanding  shares of the voting stock of the Company). The 1991 plan
          became  effective  on  September 30, 1991 and was terminated in March,
          1999.  The  1994  plan  became  effective  on  June  13, 1994 and will
          terminate  in  June,  2004, unless terminated earlier by action of the
          Board  of  Directors.  In  December,  1995, the Company authorized the
          issuance  under  the  1994  Stock Option Plan of 492,500 options at an
          exercise  price  of $2.50 per share to various officers and employees.
          On  March 6, 1997 the Company authorized the issuance of an additional
          415,000  options at an exercise price of $2.50 to various officers and
          employees.  In  June, 1999, the Company increased the shares allocated
          to  the  plan  to  1,500,000. Effective December 31, 1998, the Company
          ratified  the  repricing  of  the  employee stock options to $1.00 per
          share  and simultaneously authorized the issuance of 85,000 options at
          an  exercise  price  of  $1.00  per  share and canceled 10,000 options
          issued  in  1995  at  $2.50  per  share.  Effective February, 2000 the
          Company  issued  35,000  options  at an exercise price of $1.06 and in
          December,  2000  the Company issued 80,000 options at a $1.75 exercise
          price.


                        Read accountant`s review report.
                                      13

<PAGE>

                      NUWAY MEDICAL, INC. AND SUBSIDIARIES
                      ------------------------------------
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
                 AS OF SEPTEMBER 30, 2002 AND DECEMBER 31, 2001
                 ----------------------------------------------

NOTE  6.  INCENTIVE  STOCK  OPTION  PLAN  (CONTINUED)
--------  ------------------------------

          INCENTIVE  STOCK  OPTIONS  OUTSTANDING
          --------------------------------------
<TABLE>
<CAPTION>



<S>                                           <C>        <C>
                                              AMOUNT     PRICE PER SHARE
                                              ---------- ---------------
    OPTIONS OUTSTANDING AT JANUARY 1, 2000    982,500         $1.00
    ADDITIONAL OPTIONS ISSUED                     35,000         $1.06
    ADDITIONAL OPTIONS ISSUED                     80,000         $1.75
    OPTIONS LAPSED                            (   75,000)        $1.00
    OPTIONS EXERCISED                         (  650,000)        $1.00
                                              ----------- -------------
    OPTIONS OUTSTANDING AT DECEMBER 31, 2001     372,500
                                              =========== =============
      AND SEPTEMBER 30, 2002
</TABLE>



          All outstanding warrants and non-qualified options and incentive stock
          options  were  exercisable  at  September  30,  2002.

          The  following  table  shows  the  years in which all of the Company's
          options  and  warrants (as discussed in Notes 4, 5 and 6) will expire:

                                                         WEIGHTED
                                                         AVERAGE
                                         NUMBER OF       EXERCISE
                         RANGE           SHARES          PRICE
                        ---------------- ----------- --------------
 YEAR ENDED DECEMBER 31    LOW    HIGH
                        ------- -------- ----------- --------------

2003                     $3.00  $3.00      1,725,000        $3.00
2002                      1.00   1.00        172;500         1.00
2003                      1.00   1.00        310,000         1.00
2004                         -      -              -            -
THEREAFTER                1.06   1.75        415,000         1.74
                                           ---------
    TOTAL                                  2,622,500
                                           =========


          No  options  were  granted  in  2001  and  2002

          The  Company  adopted  the  provisions of SFAS No. 123, Accounting for
          Stock  Based  Compensation,  effective  for  fiscal  year 1997 for all
          issuances  of  stock  options  to  non-employees  of  the Company. The
          Company  will  continue  to  apply  APB  Opinion  No. 25 (Opinion 25),
          Accounting  for  Stock  Issued  to  Employees  for all issuances stock
          options  to  its  employees.  In  June  1999,  the Company adopted the
          Financial  Accounting  Standards Board Interpretation Number 44, which
          requires  re-priced  options  be re-measured for expenses based on the
          quarter  end  stock price. Expenses are also re-measured upon exercise
          for  the  options.


                        Read accountant`s review report.
                                            14
<PAGE>

                      NUWAY MEDICAL, INC. AND SUBSIDIARIES
                      ------------------------------------
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
                 AS OF SEPTEMBER 30, 2002 AND DECEMBER 31, 2001
                 ----------------------------------------------

NOTE  7.  DEBENTURES
--------  ----------

          In  December,  2000,  the Company, through a private placement, issued
          $3,500,000  principle  amount  of  6%  Convertible  Debentures.  These
          debentures  were  due  June  13,  2001,  which  had  been subsequently
          extended  to  December 13, 2001, and are Convertible into common stock
          at  an  exercise  price  of  $1.75  per  share.  The  Company incurred
          approximately $64,500 of costs in regard to this private placement and
          the  debt  issuance  costs  were  amortized  over  the  life  of  the
          debentures.  Included  as  part  of selling general and administration
          expenses  in  the  statement  of  operations for the nine months ended
          September  30,  2001 is $48,375 amortization of deferred debt issuance
          cost.  The  interest on the debentures is payable either in cash or in
          additional  shares  of common stock, at the discretion of the Company.
          The  conversion  price  of  the  debentures  was  determined  by  the
          approximate  market value of the common stock at the date of issuance.

          Prior  to  December  31,  2001,  approximately $1,100,000 of debenture
          holders  converted their debentures into common stock for the value of
          their  debentures and the accrued interest of $66,000. At December 31,
          2001, included in accounts payable was $144,000 of accrued interest on
          these  debentures. Through September 30, 2002 an additional $2,250,000
          of  debentures  holder's converted their debentures into Company stock
          for the value of their debentures and accrued interest of $132,000. At
          September  30, 2002, included in accounts payable is $9,000 of accrued
          interest  on  the  remaining  debentures  payable.

NOTE  8.  PROVISION  OF  INCOME  TAXES
--------  ----------------------------

          As  of  September  30,  2002, the Company had available for income tax
          purposes  unused  net  operating loss carry forwards which may provide
          future  tax benefits of $13,093,000 expiring through the year 2016. No
          valuation  allowance has been provided for unremitted foreign profits.
          No  provision had been provided for deferred taxes in the accompanying
          financial  statements  in  that  any  amount  of  tax benefit based on
          available  evidence  are  not expected to be realized. Some of the net
          operating  loss  may  have  been  reduced  or  eliminated  due  to the
          significant  change  in  corporate  ownership.

NOTE  9.  COMMITMENTS  AND  CONTINGENCIES
--------  -------------------------------

     A    LITIGATION
          ----------

          The  Company  is  a defendant from time to time on claims and lawsuits
          arising  out  of  the normal course of its business, none of which are
          expected  to  have  a  material  adverse  effect  on  its  business,
          operations,  financial  position  or  corporate  liquidity.


                        Read accountant`s review report.
                                       15

<PAGE>

                      NUWAY MEDICAL, INC. AND SUBSIDIARIES
                      ------------------------------------
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
                 AS OF SEPTEMBER 30, 2002 AND DECEMBER 31, 2001
                 ----------------------------------------------

NOTE  9.  COMMITMENTS  AND  CONTINGENCIES  (CONTINUED)
--------  -------------------------------

     B    EMPLOYMENT  AGREEMENTS
          ----------------------

          In  January  1997,  the  Company  entered  into a five year employment
          agreement with Lloyd Lyons which provided in part that in the event of
          either  a  merger,  consolidation, sale or conveyance of substantially
          all  the  assets  of the Company which results in the discharge of Mr.
          Lyons,  he  would  be  entitled  to  200%  of  the balance of payments
          remaining  under  the contract upon the death of Mr. Lyons the Company
          amended  its  employment contract with the surviving widow and primary
          beneficiary  of  the  Estate  of  Lloyd  Lyons,  where-in  the  salary
          continuation  clause  included  in  his  contract  was replaced with a
          severance  arrangement  which  requires  the Company to pay the spouse
          $100,000  over  a  one  year  period  commencing  on  the  first month
          following  her  termination,  from her employment with the Company and
          upon  her termination she is to receive 100,000 shares of common stock
          pursuant  to  an  amendment  to  her employment agreement. The amended
          employment  agreement  obligated  the Company to register these shares
          and  reimburse  her  for the difference in the gross proceeds upon the
          sale  of  such  shares  and $300,000, regardless of the time she holds
          such  shares.  Upon  termination of the employee contract, the Company
          will record additional compensation at the greater of the market price
          of  the  Company  stock  or  the  guaranteed  price  stipulated in the
          contract.  Effective  October  29,  2001,  Mrs.  Lyons  tendered  her
          resignation  and  based  upon  the  terms  of  her contract, severance
          expenses  of  $350,000  had  been  recorded in year 2001 with $308,000
          included  in  accounts  payable  and accrued expenses at September 30,
          2002.  The  compensation  expense  recorded  in  September,  2001  was
          comprised  of  $100,000 payable monthly for one year plus the value of
          100,000  shares  to  be issued. The Company has not paid the severance
          requirement,  as  discussed,  and  is considering its legal options to
          void  the  contract.

          In  January,  2000, the Company entered into two additional employment
          contracts,  both  for  the duration of two years and provides that the
          Company be obligated for an aggregate compensation of $115,000 in year
          2000  and  $126,500  in  year  2001. Effective August 2, 2000, both of
          these  employment  contracts  were amended to reflect upon termination
          from  employment, these individuals will be entitled to nine months of
          compensation and will receive in the aggregate 35,000 shares of common
          stock  which  the  Company  has  agreed  to  reimburse  the respective
          employees  the difference between the gross proceeds they receive upon
          sale  and  $105,000,  regardless  of  the term the employees hold such
          shares.  Upon  termination  of the employee contract, the Company will
          record  additional  compensation at the greater of the market price of
          the  Company stock or the guaranteed price stipulated in the contract.
          One  of the officers resigned in the quarter ended September 30, 2002.
          The  Company recorded an accrual for severance pay equal to the amount
          due  from  the  officer  on  a  note  (See  Note  3).  The  Company is
          considering  legal action, if necessary, to void the remaining clauses
          in  his  contract.

          The Company entered into two additional one-year employment agreements
          with  the  Chief  Operating  Officer  and  the Chief Executive Officer
          requiring  the  Company  issue  to  each  100,000  shares  of  stock
          individually  and 750,000 warrants to purchase additional common stock
          at  $1.75  per shares, individually, in March 2002, 1,500,000 warrants
          to  purchase additional common stock were cancelled (Note 4). In June,
          2002,  the  Board  of  Directors  authorized  the payment of officer's
          compensation for each of the officers at $12,000 per month retroactive
          to  October,  2001.  Included  in  Selling, General and Administrative
          Expenses  are  $242,000  of salaries in regard to this arrangement for
          the  nine  months  ended  September  30,  2002. These individuals have
          resigned  their  positions.

                        Read accountant`s review report.
                                      16
<PAGE>

                      NUWAY MEDICAL, INC. AND SUBSIDIARIES
                      ------------------------------------
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
                 AS OF SEPTEMBER 30, 2002 AND DECEMBER 31, 2001
                 ----------------------------------------------

NOTE  9.   COMMITMENTS  AND  CONTINGENCIES  (CONTINUED)
--------   -------------------------------

     C     FOREIGN  ASSETS
           ---------------

          The  accompanying  consolidated  balance  sheets  for the period ended
          September  30,  2002,  includes  assets relating to the Company's slot
          machine  operations  in  Peru  and  Colombia  of $730,000 and $588,000
          respectively.  Although these countries are considered politically and
          economically  stable,  it  is  possible  that  unanticipated events in
          foreign  countries  could  disrupt  the  company's operations. In that
          regard,  the  company was informed that in Peru an excise tax has been
          instituted  effective  October  1,  1996,  on  the  leases  of  gaming
          equipment. The company with others in the industry negotiated with the
          appropriate  governmental  agencies  and  have  had  the  excise  tax
          significantly  curtailed

          Revenue  from  rental  operations  is  entirely earned in Columbia and
          Peru.

          The  assets  of  the  oil  and  gas  operations,  which  aggregate
          approximately  $1,330,000 are entirely in Canada. All revenue from oil
          and  gas  is  earned  in  Canada.

     D    LEASE  COMMITMENT
          -----------------

          As  at  September  30,  2002,  all  operating  leases  for  corporate
          facilities  are either short-term leases or have expired and are being
          continued  on  a  month-to-month  basis.

     E    CONTRACTUAL  COMMITMENT
          -----------------------

          In  February,  2002, the Company entered into an agreement with Avalon
          Capital,  Inc.  (AVA)  whereby AVA will use its best efforts to find a
          merger  candidate for the Company. If a merger is consummated within a
          year  of  introduction, AVA will be entitled a finders fee equal to 3%
          of  the  value of the aggregate number of shares outstanding after the
          merger,  on  a  fully  diluted  basis.

     F    CONSULTING  AGREEMENT
          ---------------------

          In  September,  2002  the  Company  entered  into  an agreement with a
          consultant  to provide assistance in implementing its medical business
          strategy  related  to  its  shift  in  business  focus  to the medical
          technology  and  healthcare  industries. The arrangement obligates the
          Company  to  issue 125,000 of stock for past consultations and $15,000
          per  month  for twelve months during the duration of the contract. The
          arrangement  can  be  terminated  by  either  party  with fifteen days
          written  notice.

NOTE  10  IMPAIRMENT  LOSS
--------  ----------------

          In  2001,  the  Company recorded an impairment loss as a result of the
          obsolescence  of  parts  used in the gaming equipment and reduction of
          values  of  the  utility  of  the  gaming  equipment.


                        Read accountant`s review report.
                                       17
<PAGE>

                      NUWAY MEDICAL, INC. AND SUBSIDIARIES
                      ------------------------------------
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
                 AS OF SEPTEMBER 30, 2002 AND DECEMBER 31, 2001
                 ----------------------------------------------


NOTE  11  GOING  CONCERN
--------  --------------

          The  Company  has  accumulated  net  losses  of  $14,032,144  through
          September  30, 2002, and has a history of deficiency of operating cash
          flows  and losses from operations. These factors create an uncertainty
          about the Company's ability to continue as a going concern. Management
          of  the  Company  is  developing a plan to reduce current liabilities,
          reduce expenses, raise additional capital, and considering the sale of
          certain  oil  well  assets  to  generate  sufficient  cash  to sustain
          operating  overhead.  In  addition,  the  Company  is  exploring other
          business  ventures  they  anticipate will be profitable. The financial
          statements  do  not include any adjustments that might be necessary if
          the  company  is  unable  to  continue  as  a  going  concern.

NOTE  12  OPERATING  SEGMENTS
--------  -------------------
<TABLE>
<CAPTION>


                                    FOR  THE  NINE MONTHS ENDED SEPTEMBER 30, 2002
                              ----------------------------------------------------
                                      CIGAR        OIL      GAMING
                           TOTAL   OPERATIONS    & GAS     EQUIPMENT   UNALLOCATED
                           ------- ----------  ---------  ----------   -----------
<S>                      <C>        <C>         <C>         <C>        <C>
        REVENUES         $ 629,415  $  85,230   $298,527  $  245,658   $        -

        COST & EXPENSES

        COST OF PRODUCT
          SOLD*            348,908    348,908          -           -            -
        DIRECT OVERHEAD
          COST             814,210    116,059      82,959     373,192     242,000
        ALLOCATED
          OVERHEAD COST    938,205    127,044     444,984     366,177           -
        DEPRECIATION &
          DEPLETION        318,020      5,352     284,218      20,650       7,800
        EXPENSES ASSOC.,
          WITH TOCK ISSUED
            FOR SERVICES   645,000          -           -           -     645,000
                           ------- ----------    --------   ---------  -----------

        TOTAL COST AND
           EXPENSES      3,064,343    597,363     812,161     760,019     894,800
                         --------- ----------    --------   ---------   ----------

        OPERATING
          INCOME(LOSS) ($2,434,928) ($512,133) ($513,634) ($514,361)  ($894,800)
                       -----------  ---------- ---------- ----------- -----------

        TOTAL ASSETS    $7,797,000   $180,000  $1,330,000  $1,318,000  $4,969,000
                       ===========   ========= ==========  ==========  ==========
</TABLE>



          Include the cost of losses on a bulk sale of $150,000 and an inventory
adjustment of $120,000 to reflect inventory at the lower of cost or market value
(See  Note  1-K).



                        Read accountant`s review report.

18
<PAGE>


                      NUWAY MEDICAL, INC. AND SUBSIDIARIES
                      ------------------------------------
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
                 AS OF SEPTEMBER 30, 2002 AND DECEMBER 31, 2001
                 ----------------------------------------------

NOTE  12     OPERATING  SEGMENTS  (CONTINUED)
--------     -------------------
<TABLE>
<CAPTION>
                                    FOR  THE  NINE MONTHS ENDED SEPTEMBER 30, 2002
                              ----------------------------------------------------
                                      CIGAR        OIL      GAMING
                           TOTAL   OPERATIONS    & GAS     EQUIPMENT   UNALLOCATED
                       -----------   ---------- ---------  ----------  ------------
<S>                    <C>            <C>       <C>        <C>         <C>
       REVENUES            $497,562   $122,770  $        -  $374,792   $          0
                       -----------   ---------- ---------- ----------- ------------

        COST & EXPENSES

        COST OF PRODUCT
         SOLD                77,944     77,944           -          -             -
        DIRECT OVERHEAD
         COST               904,910    145,716      25,438     733,756            -
        ALLOCATED
         OVERHEAD COST    1,783,166    440,019           -   1,343,147            -
        DEPRECIATION AND
         DEPLETION           87,555      7,803           -      71,652        8,100
        ASSET IMPAIRMENT
         CHARGES            347,071          -           -     347,071            -
                       -----------   ---------- ---------- ----------- ------------
        TOTAL COST AND
          EXPENSES        3,200,646    671,482      25,438   2,495,626        8,100
                       -----------   ---------- ---------- ----------- ------------

        OPERATING
         INCOME(LOSS)  ($2,703,084)  ($548,712)   ($25,438)($2,120,834)     ($8,100)
                       -----------   ---------- ---------- ----------- ------------

        TOTAL ASSETS    $8,139,700    $631,000  $1,825,000  $4,347,895   $1,336,000
                        ===========   ========= ==========  ========== ============
</TABLE>





          The  Company allocates indirect overhead expenses to specific segments
          in  proportion to the revenues earned by the segment. All revenue from
          gaming  equipment  and  the  related  assets  are in South America All
          revenue  and  significantly  all assets of the cigar operations are in
          the  United  States.  All  operations  and  assets  of the oil and gas
          operations  are  in  Canada.


                        Read accountant`s review report.
                                      19

<PAGE>

                      NUWAY MEDICAL, INC. AND SUBSIDIARIES
                      ------------------------------------
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
                 AS OF SEPTEMBER 30, 2002 AND DECEMBER 31, 2001
                 ----------------------------------------------

NOTE  13  OIL  AND  GAS  PRODUCING  ACTIVITIES
--------  ------------------------------------

          The  following  information  includes  estimates  which are subject to
          rapid  and  unanticipated  change.  The  Company  cautions  that  the
          discounted  future net cash flows from proved oil and gas reserves are
          not  an  indication  of the fair market value of the Company's oil and
          gas  properties  or the future net cash flows expected to be generated
          from  the  properties.  The  discounted  future  net cash flows do not
          include  the  fair market value of exploratory properties and probable
          or  possible oil and gas reserves. Also, the estimates do not consider
          the  effect  of future changes in oil and gas prices, development, sit
          restoration  and  production  costs,  and  possible changes in tax and
          royalty  regulations.  The  prescribed  discount  rate  of 10% may not
          appropriately  reflect  future  interest  rates.

          All amounts below, except for cost, acreage, wells drilled and present
          activities,  relate to Canada. McDaniel & Associates Consultants Ltd.,
          Independent  consultants,  provided  oil  and gas reserve data and the
          information  relating  to  cash  flows.

          Estimated  net  quantities  of  proved  oil and gas reserves at are as
          follows:
<TABLE>
<CAPTION>



<S>                                              <C>                 <C>
                                                               OIL   GAS
PROVED RESERVES:                                              (BBLS) (MCF)
                                                 ------------------  -------

      BALANCE AT DECEMBER 31, 2001                         140,000    70,700
      PRODUCTION FOR NINE MONTHS ENDED
        SEPTEMBER 30, 2002                                  21,500         -
                                                 ------------------  -------

           BALANCE SEPTEMBER 30, 2002                      118,500    70,700
                                                 ==================  =======

    PROVED DEVELOPED RESERVES


      BALANCE AT DECEMBER 31, 2001                         140,000    70,700
      PRODUCTION FOR NINE MONTH ENDED
        SEPTEMBER 30, 2002                                  21,500         -
                                                 ------------------  -------

           BALANCE SEPTEMBER 30, 2002                      118,500    70,700
                                                 ==================  =======


                        RESULTS OF OIL AND GAS OPERATIONS
                        ---------------------------------

    INCOME:
      OIL SALES                                  $         298,527
                                                 ------------------

    COST AND EXPENSES:
      LEASE OPERATING COST                                 104,392
      DEPLETION, DEPRECIATION AMORTIZATION                 284,218
      SITE RESTORATION COSTS                                14,020
                                                 ------------------

                                                           402,630
                                                 ------------------

    NET LOSS FROM OPERATIONS                             ($104,103)
                                                 ==================

    CAPITALIZED COST OF OIL AND GAS ACTIVITIES:
      ACQUISITION COSTS                          $         257,928
      EXPLORATION                                          379,781
      DEVELOPMENT                                          614,403
</TABLE>

                        Read accountant`s review report.
                                      20
<PAGE>

                      NUWAY MEDICAL, INC. AND SUBSIDIARIES
                      ------------------------------------
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
                 AS OF SEPTEMBER 30, 2002 AND DECEMBER 31, 2001
                 ----------------------------------------------

NOTE  13     OIL  AND  GAS  PRODUCING  ACTIVITIES  CONTINUED
--------     ------------------------------------
<TABLE>
<CAPTION>


          STANDARDIZED  MEASURE  OF  DISCOUNTED  FUTURE  NET  CASH  FLOWS
         RELATING  TO  PROVED  OIL  AND  GAS  RESERVE  QUANTITIES  DURING
         THE  FOLLOWING  PERIOD:


<S>                                         <C>
    FUTURE CASH INFLOWS                     $  1,578,000
    FUTURE DEVELOPMENT AND PRODUCTION COST       891,000
                                            -------------


                                                 687,000
    FUTURE INCOME TAX EXPENSE*                         -
                                            -------------


    FUTURE NET CASH FLOWS                        687,000
    10% ANNUAL DISCOUNT                      (    51,000)
                                            -------------


    STANDARDIZED MEASURE OF DISCOUNTED
      FUTURE NET CASH FLOWS                 $    636,000
                                            =============
</TABLE>

          *Reflects  total  tax  pools for the period to September 30, 2002 that
may  be used to offset oil and gas income.  The tax pools are comprised of carry
forward  of  exploration,  development  and  lease  acquisition  costs,
under-appreciated  capital  costs  and  earned  depletion  of  $1,513,000.

          Current  prices  used  in  the above estimates were based upon selling
prices  at the wellhead at January 1, 2002 less the historical quality and price
differentials  for  each  respective  field  as  follows:

          Oil  -  Hardisty  Heavy  ($CDN./bbl)(In U.S. $)               $ 11.831
          Gas  -  Alberta  average  @ Field gate $CDN./Mmbm) (In US$)   $  3.458

          Current  cost was based upon estimates made by consulting engineers at
December  31,  2001.


                        Read accountant`s review report.
                                     21
<PAGE>



GENERAL
-------

Latin  American  Casinos,  Inc.
-------------------------------

The  Company  entered  the  gaming  and  casino  industry in Peru in 1994. Since
January  1995,  the Company has been engaged in the renting of slot machines and
other  gaming  equipment  to  licensed  gaming  establishments in various cities
through its wholly owned subsidiaries in South and Central America. In 1994, the
Company  formed its Peruvian subsidiary, and in late 1995 the Company formed its
Colombian  subsidiary.

As  of  September  30,  2002,  the  Company had approximately 300 machines under
rental  contracts  in  Peru  and  Colombia.

The  Company in this segment concentrates its efforts on the rental of used five
reel  slot  machines. These machines were purchased at a fraction of the cost of
new  machines  and  are  refurbished  for  use  in  South  and  Central America.
Whereas  a  new  slot  machine  would cost approximately $10,000 plus additional
charges  for duty, the used slot machines cost approximately $700 each including
freight,  duty,  and  refurbishing  expenditures.

During  the  most recent quarter ended September 30, 2002, the Company announced
that it would sell the Latin American Casinos business unit and negotiations and
efforts  are  underway  to  accomplish  that  goal.


World's  Best  Rated  Cigar  Company,  Inc.
-------------------------------------------

In September 1997, the Company incorporated World's Best Rated Cigar Company, as
a  wholly  owned  subsidiary  to  distribute  premium  cigars. It was originally
intended  that  the  company would acquire quality cigars from six manufacturers
and  market  them  at "off price" through large retail chains. In February 2000,
the  marketing  strategy  was  modified to include selling directly to consumers
through  our  web  site,  www.worldsbestrated.com,  and  our  toll  free number.
Substantially all advertising expense incurred is paid with barter transactions.
During  the  quarter  ended  September 30, 2002, the company disposed of 300,000
cigars  and  converted  its  retail  selling  operation  to  a wholesale selling
operation  until  the  inventory  is  fully  sold at which time the Company will
discontinue  operations  in  this  business.


The  Nuway  Resources  of  Canada,  Inc.
----------------------------------------

Beginning  in  July  2001  the  Company  directed  part  of  its  efforts to the
exploration  for  and  the development of oil and gas properties in Canada.  The
Company's  exploration  and  development  activities  related to oil and gas are
conducted  jointly with others.  The Company purchased a 30% working interest in
the  Superb  area  of  Saskatchewan,  Canada  and  a 20% working interest in the
Altares  Gas  project  in  Northeast  British  Columbia.

The  Company  intends to divest itself of these assets and is exploring numerous
options,  including  without  limitation, a spin-off, a sale (either together or
separately)  or  other  divestiture  so  that the Company can concentrate on its
medical  technology  and  health  care  services  business.


Shift  in  Business  Focus  to  Medical  Technology  and  Healthcare  Services
------------------------------------------------------------------------------

Beginning  in June 2002, the Company began its shift in business focus away from
the gaming equipment and cigar industries, and toward the medical technology and
healthcare  services  industries.  The reason for this is the Board of Directors
believed the healthcare sector represents a significant business opportunity for
the  Company,  and  current  management  has the experience to take advantage of
current  market  conditions  in  this  sector.


Name  Change
------------

On  July  18, 2002, the Board issued a Consent whereby they unanimously approved
an amendment to The Company's Certificate of Incorporation to change the name of
the  company  from  "Nuway Energy, Inc." to "The Nuway Medical, Inc." (the "Name
Change").   On  August  12,  2002, the consenting stockholders issued a Consent,
whereby  they approved the Name Change.   It is the opinion of the Board and the
consenting  shareholders  that  the  Name Change is desirable to more accurately
                                      22
<PAGE>
reflect  the  nature  of  the  business and operations of the Company on a going
forward  basis.  Accordingly,  it  is the opinion of the Board that it is in the
best  interests of the company and its shareholders to commence the Name Change.
The  Board  of  the  Company  approved  this  decision  and  a  majority  of the
stockholders  have  consented to the transaction. The effectiveness of this Name
Change  was  subject to our compliance with Regulation 14C of the Securities and
Exchange  Act  of  1934,  as  amended,  and  NASDAQ  regulations,  including all
requisite  filings, which was accomplished. The filing was made on September 23,
2002.  Of the 7,761,353 shares outstanding, shareholders owning 3,930,183 shares
consented.  The  Name  Change  Amendment became effective upon the filing of the
Amended  Certificate  of  Incorporation with the Secretary of State of Delaware.
Under  federal  securities  laws,  The  Company  could  not  file  the  Amended
Certificate  of  Incorporation  until at least 20 days after the mailing of this
Information  Statement  and  the  Company  filed  that  Amended  Certificate  of
Incorporation  during  the  month  of  October.


Increase  in  Authorized  Shares  and  Creation  of  a  Preferred Class of Stock
--------------------------------------------------------------------------------

On  July  18, 2002, the Board issued a Consent whereby they unanimously approved
an  amendment  to  The  Company's  Certificate  of Incorporation to increase the
authorized  common stock from 15,000,000 to 100,000,000 shares, and to authorize
the  issuance  of  up  to 25,000,000 shares of preferred stock, such terms to be
defined  at  the  time  of issuance.  Both share authorizations are cumulatively
referred  to  as  the  "Authorized  Shares Amendment."   On August 12, 2002, the
consenting  stockholders  issued a Consent, whereby they approved the Authorized
Shares  Amendment.  At  the  time  this  action  was  approved,  The Company had
15,000,000  shares  of  common  stock  authorized, of which 7,761,353 shares are
issued  and  outstanding  as  of the record date.  Shareholders owning 3,930,183
shares  consented.

The  Authorized  Shares  Amendment  will  be  implemented  by filing the Amended
Certificate  of Incorporation with the Secretary of State of Delaware.  Once The
Company  filed  the Amended Certificate of Incorporation, The Company would have
92,238,647  shares  of  authorized  but  unissued  common  stock  available  for
issuance,  as  determined  on  the  date  the decision was made, less any common
shares  that  may  have  been  issued  between  the date upon which the Board of
Directors  approved  the  increase and it's effective date, so long as the total
issued  and  outstanding  number  of  common  shares did not exceed the limit of
15,000,000,  prior  to  effective  date  of  the increase to 100,000,000 shares.

The  unissued shares of common stock will be available for issuance from time to
time  as may be deemed advisable or required for various purposes, including the
issuance  of shares in connection with financing or acquisition transactions and
the  issuance  or  reservation  of common stock for employee stock options.  The
Company's  Board  would  be  able  to authorize the issuance of shares for these
transactions  without  the  necessity,  and  related costs and delays, of either
calling  a  special  stockholders'  meeting  or  of  waiting  for  the regularly
scheduled  annual  meeting  of  stockholders in order to increase the authorized
capital.  If  in  a particular transaction shareholder approval were required by
law  or any stock exchanges or markets or were otherwise deemed advisable by the
Board,  then the matter would be referred to the stockholders for their approval
notwithstanding  that  The  Company  might  have  the requisite number of voting
shares  to  consummate  the  transaction.

The Authorized Shares Amendment is not intended to have any anti-takeover effect
and  is  not  part of any series of anti-takeover measures contained in any debt
instruments  or the Certificate of Incorporation or the Bylaws of The Company in
effect  on  the  date  of  this  Information  Statement.  However,  The  Company
stockholders  should  note  that  the  availability of additional authorized and
unissued  shares  of  common stock could make any attempt to gain control of The
Company  or the Board more difficult or time consuming and that the availability
of  additional  authorized  and  unissued shares might make it more difficult to
remove  management.  Although  the Board currently has no intention of doing so,
shares  of common stock could be issued by the Board to dilute the percentage of
common stock owned by a significant shareholder and increase the cost of, or the
number  of,  voting  shares necessary to acquire control of the Board or to meet
                                      23
<PAGE>

the  voting  requirements  imposed  by  Delaware law with respect to a merger or
other  business  combination involving The Company.  The Company is not aware of
any  proposed  attempt  to  take over the company or of any attempt to acquire a
large block of The Company's common stock.  The Company has no present intention
to  use  the  increased authorized common stock for anti-takeover purposes.  The
Authorized Shares Amendment will become effective upon the filing of the Amended
Certificate of Incorporation.  Under federal securities laws, The Company cannot
file  the  Amended Certificate of Incorporation until at least 20 days after the
mailing  of  this  Information  Statement,  which  has  been  accomplished.


Transactions  Related  to  Medical  Technology  and  Healthcare  Services
-------------------------------------------------------------------------

As  of  the  quarter  ended  September  30, 2002 the Company had concluded three
transactions  in  accordance  with  it's  stated  shift  in  business  focus.

The  first  agreement  dated  June  27,  2002  was with Camden Holdings, Inc., a
diversified  holding  company  with  interests in many industries, including the
healthcare  industry. The Company received financing of $250,000 in exchange for
1,000,000  shares  of  our  restricted common stock. Shareholder consent was not
required  for  the  agreement.

The  second  agreement, dated June 28, 2002, is an asset purchase agreement with
Genesis  Health  Tech,  Inc.,  a wholly owned subsidiary of Camden Holdings. The
Company  purchased  a  comprehensive database of healthcare providers throughout
the  U.S.,  in  exchange  for 666,667 shares of our restricted common stock. The
Board  has  approved  this  agreement,  and  a majority of the stockholders have
consented  to  the  transaction.  Of  the  7,761,353  shares  of  common  stock
outstanding, shareholders owning 3,930,183 shares consented to this transaction.
The  closing  of  this transaction was subject to our compliance with Regulation
14C  of  the  Securities  and  Exchange  Act  of  1934,  as  amended, and NASDAQ
regulations,  including  all  the  filings,  which  has  been  accomplished.

The  Company entered into a third agreement with Med Wireless, Inc., on July 16,
2002,  as  amended August 21, 2002.  The initial executed agreement contemplated
the issuance of 3 shares of The Company for each 1 share of Med Wireless shares,
but  only  after giving effect to a 5 for 1 forward split of the Company Shares,
as  was  contemplated by the Board of Directors of The Company and called for in
the  agreements  between  the  Company  and Med Wireless, Inc. Subsequent to the
execution of the Med Wireless, Inc. agreement, dated July 16, 2002, the Board of
Directors  of  The Company elected by written consent on August 18, 2002 elected
to  delay  the  implementation  of a 5 for 1 Forward Split of it's common stock.
The  agreements  between  Med  Wireless and the Company were then amended by Med
Wireless, Inc and the Company to reflect the issuance of 6,600,000 shares of The
Company  common  stock to the shareholders of record of Med Wireless, Inc, which
results  in the same proportionate ownership of The Company to the Med Wireless,
Inc.  shareholders  as  contemplated  in the original executed agreement as more
fully  described  below.  The Company Board of Directors intends to consider the
decision  to  affect  the  forward split in the future, and it now delayed until
further  notice.

On  August  12,  2002, the consenting stockholders issued a Consent whereby they
approved  the  Terms  (as  defined  below)  of a proposed license and assignment
agreement  between  the Corporation and Med Wireless, Inc., a Nevada corporation
("Med  Wireless").  On  August  19, 2002, the Board issued a Resolution adopting
and  approving  an Exclusive License and Assignment Agreement (the "Med Wireless
Agreement")  by and among The Company and Med Wireless pursuant to which (i) for
a  period  of  15  years, The Company would license from Med Wireless all of its
rights  and  interest  in  certain  applications  and  software  relating to the
movement  of  medical  images and data though the Internet and handheld wireless
devices, databases of healthcare providers and customer lists, (ii) Med Wireless
would  assign  its  customer and distribution agreements related to the licensed
intellectual  property  to  The  Company,  and  (iii)  The  Company would assume
$1,120,000  of outstanding debt of Med Wireless, in exchange for the issuance to
Med  Wireless  of  6,600,000  shares of The Company restricted common stock (the
"Terms").  The  Med  Wireless  Agreement  will  result  in  Med  Wireless owning
approximately 44% of The Company's outstanding shares after giving effect to the
transaction.  Two  affiliated  parties,  each  with  minority  interests  in The
Company,  also  own  minority  interests  in  Med  Wireless  either  directly or
indirectly.  The  two  parties  combined control 52.3% of Med Wireless, although
                                      24
<PAGE>

the  two  parties do not have any oral or written agreement to act in concert in
any  respect.  The  closing of this transaction was subject to the effectiveness
of  a filing of a Schedule 14C and compliance with NASDAQ regulations, including
all  requisite  filings,  which  were  accomplished  during the quarter.  Of the
7,761,353  shares outstanding, shareholders owning 3,930,183 shares consented to
this  transaction.

Med  Wireless,  Inc.  has  developed  a  number of wireless applications for the
healthcare  industry.  These  technologies  are  primarily  based  on  allowing
high-resolution  transfer  of  diagnostic-quality  images, including ultrasound,
over  the Internet and intranet networks.  We intend to license the entire suite
of  products,  sell direct to end-users and enter into   distribution agreements
for  the  sale  of  these  products.

The  Med  Wireless  products  offering  are  unique  and  highly  specialized.


FUTURE  TRENDS
--------------

Over  the  next four quarters, we intend to continue to shift our business focus
away  from  the  gaming  equipment  and cigar industries, and toward the medical
technology  and  healthcare  services  industries.

The company intends to add products and services, which are complimentary to the
company's  core  technology  and  distribution  capabilities.   Management  is
actively  negotiating with potential customers distributors and suppliers to add
to  the  company's  offering to customers. The company has begun a comprehensive
marketing  program  including  participation  in  trade  show  events  and media
promotions  and  direct  selling  efforts.

Management  is  actively evaluating potential acquisition candidates and intends
to  acquire  complimentary  companies  or  technologies.

All  transactions  have  been and continue to be conducted at arms-length terms,
and  all  shares  received  were  and  will  be  valued  at fair market price as
determined  by  our  trading  price.

We  intend to divest ourselves of the gaming equipment and cigar industries when
and  if  such  opportunities  arise  which result in a transaction value that is
beneficial  to  the  company and its shareholders.  Any such transaction will be
conducted  at arms-length and for fair value.  We do not currently have any such
definitive  agreements  proposed  or  pending.


Litigation  between  Todd  Sanders  and  Nuway  Medical,  Inc.
--------------------------------------------------------------

On  October  30, 2002 Mr. Todd Sanders, former President and CEO of the Company,
through  his  company,  Devenshire  Management  Corp, as represented by counsel,
filed  a  legal action against the Company in the Superior Court of the State of
California  and  in  and for the County of Los Angeles, seeking an order to show
cause  regarding  a preliminary injunction; mandatory preliminary injunction and
seeking  a temporary restraining order, effectively seeking to force the Company
to  instruct  the  Company's  stock  transfer  agent, American Stock Transfer to
remove  any restricted legend on 323,903 shares of common stock which Devenshire
indicated in it's pleadings had already been sold.  The initial motion was heard
in  an  Ex  Parte  Hearing  and  the  request  was initially granted in favor of
Devenshire.

The Company, upon learning of the action referenced above, through it's counsel,
appeared in the same Superior Court forthwith, presenting argument in opposition
to  the  motions by Devenshire and the initial ruling by the Court was reversed,
in  favor  of  the  Company, pending additional hearings. Two days later another
hearing  was scheduled and the Court elected to not hear any argument, and set a
hearing  for  November  25,  2002.

In a separate matter, on November 11, 2002, the Company tendered a formal notice
of Mr. Todd Sanders that he promptly return all corporate records, minute books,
and Board of Directors resolutions that the Company believes he had removed from
the  Company's  former  corporate offices, without authority of the Board or the
Company.  He  has  not  yet  complied  nor responded to the demand. The Board of
Directors  is  reviewing  his  activities  as  an  officer  of  the  Company.
                                      25
<PAGE>

NASDAQ
------

NASDAQ  delivered to the Company a letter on June 14, 2002 notifying the company
of  it's  requirement  to  maintain  compliance  with  Marketplace Rule 4310 (c)
(8)(D),  commonly referred to as the $1.00 minimum bid price rule.   This letter
put  the  Company on notice of its obligation to fulfill the requirements of the
Rule  on or before December 11, 2002.  It further went on to explain that if the
company  did  not meet the requirements of the Rule, that the NASDAQ staff would
review  the  most  recent  quarterly  report  of the company to determine if the
Company  met  the  initial  listing  criteria.  If the Staff determines that the
Company meets the initial listing criteria, then an additional 180 days would be
granted to allow the company time to meet the Rule. If the Company does not meet
the  initial listing requirements on or before December 11, 2002, then the Staff
would notify the Company that it's would be delisted and the Company is entitled
to  an  appeal  process.

Based  on the information contained in this report, the Company believes it will
meet  the  initial  listing  requirements.


ISOP
----

On  October  12,  2002  the  Board  of  Directors  approved  the  formation  and
ratification of a company Incentive Stock Option Plan for use in recruitment and
retention  of  qualified  staff  to  serve the Company.  The plan authorizes the
issuance  of  up  to  5,000,000  common shares of stock.  The Board of Directors
approved by written consent a grant of 1,000,000 shares of stock pursuant to the
Company's  Incentive  Stock  Option  Plan,  to be granted to Mr. Dennis Calvert,
President  and  CEO  of  the  Company  as  consideration  for  his  services.


Employment  Agreement
---------------------

The  Company  is  seeking  to  secure  a long-term employment agreement with Mr.
Calvert  and  intends to conclude such an agreement as soon as possible, but not
later  than  by  the  end  of  the  year  2002.


Quarterly  Filing  Due  September  14,  2002
--------------------------------------------

In  an  effort  to  comply  with  it's  filing requirements, the Company filed a
notification  of  late filing on Form 12b-25 in paper form by overnight delivery
on  November 14, 2002 for delivery to the Securities and Exchange Commission for
delivery  on  November  15,  2002.  This  form is used as a notification of late
filing  by  a  reporting  company  that  determines  that it is unable to file a
required  periodic report when first due without unreasonable effort or expense.
If  a  company  files a Form 12b-25, it is entitled to relief, but must file the
required  report within five calendar days (for a Form 10-Q or 10-QSB) or within
fifteen  calendar  days  (for  a  Form  10-K,  10-KSB,  20-F,  11-K,  or N-SAR).

On  the  next  business  day, November 18, 2002, the Company filed the same Form
12b-25  by  electronic  submission  through  the  EDGAR system.  That electronic
submission  was received and recorded as "accepted but reclassified as NTN 10Q".

The  Company  intends  on  reviewing  this  classification in light of the paper
filing  accomplished  on  November 15, 2002 to reclassify its filing as a timely
filing.  The  Company believes that this would be proper in light of unusual and
unforeseen  circumstances.  On  November  14,  2002,  the  SEC's  EDGAR  system
experienced  technical  difficulties  and in an abundance of caution the Company
filed  the  Form  12b-25 by paper.  No assurance can be given that the Company's
submission  will  be  reclassified  as  timely.


Management's  Discussion  and  Analysis  or  Plan  of  Operation
----------------------------------------------------------------
                                      26
<PAGE>

Results  of  Operations
-----------------------

The  nine-month  period  and  three-month  period  ended  September  30, 2002 as
compared  to  the  nine-month  period and three-month period ended September 30,
2001
----------------------

     Revenues
     --------

     Revenues  from the gaming equipment operations in Peru and Colombia for the
nine-month  period  ended  September  30,  2002 decreased by $129,134 or 34%, to
$245,658  from  $374,792 for the comparable period in 2001.  For the three month
period  ended September 30,2002 revenues decreased by $46,716 or 43% to $62, 318
from  $109,034  compared  to  the  same  period  in 2001.  This decrease in both
periods  was  the result of an overall weakness of the economy in South America,
political  changes  and increased competition in the industry.  The company also
experienced  the  effects  of  government-mandated  obsolescence  in Peru, which
required  us  to  retire  200 machines from our inventory. We also significantly
reduced  marketing  and  advertising  expensing,  in  view  of  our  decision to
discontinue  operations  in  this  business.

     Revenues from cigar sales for the nine months ended September 30, 2002 were
$85,230 a decrease of  $37,540 or 31% for the same period in 2001. For the three
month  period ended September 30,2002 revenues were $39,322 compared to revenues
of $50,995 a decrease of $11,673 or 23% compared to the same period in 2001.  We
also  significantly  reduced marketing and advertising expensing, in view of our
decision  to  discontinue  operations  in  this  business.

     Revenues  from  our  oil  and  gas  operations  for  the  nine months ended
September  30,  2002  were $298,527.  For the three month period ended September
30,2002  revenues  were  $83,965.  The  company  did  not  have  any oil and gas
activities  in  the  corresponding  periods  in  2001.


     Capital  Expenditures
     ---------------------

     There  were no capital expenditures for the gaming equipment operations for
the  nine-month  period  ended  September  30,  2002, which is equivalent to the
capital expenditures of the same period ended 2001.  The three-month results are
the  same  as  nine-month  results.

     Capital  expenditures  for the cigar business were zero for the nine months
ended  September  30,  2002,  as  compared  to  zero  for  the nine months ended
September  30, 2001. The three-month results are the same as nine-month results.

     Capital  expenditures  for the oil and gas business were $1,530,582 for the
nine  months  ended  September 30, 2002, as compared to zero for the nine months
ended  September  30,  2001.  The three-month results are the same as nine-month
results.


     Capital  expenditures  for the Med Wireless Transaction were $4,620,000 for
the nine months ended September 30, 2002 as compared to zero for the nine months
ended  September  30,  2001.  All capital expenditures for this transaction were
recorded  in  the  past  three  months  and there were zero capital expenditures
related  to  this  transaction  in  2001.

     Selling,  General  and  Administrative  Expenses
     ------------------------------------------------

     Selling,  general,  and administrative expenses incurred in the nine-months
ended  September  30,  2002  decreased  $854,073  or  52%,  to  $1,634,003  from
$2,688,076 for the same period in 2001, and for the three months ended September
30,  2002  decreased  $784,790 or 58%, to  $559,100 from $1,343,890 for the same
period  in  2001.  This  reduction  is  due  to  our  reduction in marketing and
advertising  expenses  for our cigar and gaming equipment industries, as well as
our  10%  reduction  in  staff  in  our  Miami  operations.

                                      27
<PAGE>
     Net  Profit  (Loss)
     -------------------

     Net  loss for the months ended September 30, 2002 was  $2,427,362 or $(.33)
per share as compared to $2,577,955 loss or $(.61) per share for the same period
2001.  Net  loss for the three months ended September 30, 2002 was ($1,112,750),
or  $(.11)  per  share  as compared to  ($1,231,823) or $(.29) per share for the
comparable  period  ended 2001, representing a decrease of $119,023 in net loss.
The  reason  for  the net loss per share being less for the three and nine month
periods  ended  September  30,  2002 as compared to the same periods in 2001 was
because  of  the  increase in outstanding shares in 2002.  This reduction is the
result  of  our  reduction  of  costs  in  selling,  general  and administrative
expenses,  discussed  above.


Liquidity  and  Capital  Resources
----------------------------------

     Cash  and  cash  equivalents  decreased  approximately  $823  to  $8,902 at
September 30, 2002 from $9,725 at June 30, 2002. The decrease is attributable to
overhead  expenditures  higher  than  operating revenues, and the continued slow
growth  of  the  cigar  operations  and  increase  of  oil  and  gas operations.

     The  company  has  $19,623  outstanding in loans to companies controlled by
Related  parties  please  refer  to  our  discussion  in note 3 to our financial
statements.  The  notes are payable quarterly, and accrue interest at prime plus
1%  (5.75%  at  September  30, 2002).  The company anticipates full repayment of
this  loan  by  the  end  of  2002.

     The  company  has  an  outstanding  loan  of $40,000 to Jeffrey Felder, the
current  president  of  our  cigar  subsidiary,  and  formerly an officer of the
company.  The note was payable quarterly, and accrued interest at prime plus 1%,
and  matured  on  October  29,  2001,  the termination date of the officer.  The
company  anticipates  full  repayment  of  this  note  by  the  end  of  2002.

     In  December 2000, the company offered a private placement of $3,500,000 in
principal amount of 6% Convertible Debentures, which are convertible into common
stock  at  an  exercise  price  of  $1.75  per share.  These debentures were due
September  13,  2001,  and  were  subsequently  extended  to  December 13, 2001.
$150,000  of  these debentures remains unconverted and outstanding, with accrued
interest of $9,000.  These notes are currently under default, and the company is
negotiating  the  terms of settlement with the note holders. Please refer to our
discussion  in  Note  7  to  our  financial  statements.


Part  II  -  OTHER  INFORMATION


Legal  Proceedings
------------------

The disclosures set forth under the caption "Litigation between Todd Sanders and
Nuway  Medical,  Inc."  are  hereby  incorporated  by  reference.

Defaults  of  Senior  Securities
--------------------------------

As  of  December 13, 2001, the Company has been in default on its 6% convertible
debentures.  The  current  amount in default is  $150,000, not including  $9,000
of  accrued  interest  due.  Please  refer  to  our  discussion in "Management's
Discussion  and  Analysis  - Liquidity and Capital Resources," and Note 7 to our
financial  statements.


Submission  of  Matter  to  a  Vote  of  Security  Holders
----------------------------------------------------------

                                      28
<PAGE>
The  disclosures  set  forth  under  the  captions  "Name  Change", "Increase in
Authorized Shares and Creation of a Preferred Class of Stock", and "Transactions
Related  to  Medical Technology and Healthcare Services" are hereby incorporated
by  reference.

Exhibits  and  Reports  on  Form  8-K
--------------------------------

(a)     Exhibits
     --------

3.1     Articles  of  Incorporation  (Delaware),  as  amended  (1)

3.2     Certificate  of  Merger  Merging  Repossession  Auction,  Inc.  (Florida
        Corporation)  and  Repossession  Auction,  Inc.  (Delaware
        Corporation)(1)

3.3     Bylaws  (1)

3.4     Certificate  of  Amendment  to  Certificate  of  Incorporation  (1)

3.5     Certificate  of  Amendment  to  Certificate  of  Incorporation  (3)

3.6     Bylaws,  as  amended  (3)

4.1     Form  of  publicly  traded  Warrant  Agreement  (1)

4.2     Form  of  private  warrant  dated  December  12,  2000  (1)

4.3     Form  of  6%  Convertible  Debenture  dated  December  14,  2000  (1)

4.4     Form  of  Amendment  to  6%  Convertible  Debenture  (1)

4.5     Amendment  to  Publicly  Traded  Warrant  (1)

10.1    Share  Purchase  Agreement  with  Camden  Holdings,  dated June 27, 2002

10.2     Asset  Purchase Agreement by and among the Company, Camden Holdings and
Genesis  Health  Tech,  dated  June  28,  2002.

10.3     Agreement  with Med Wireless Inc. dated August 21, 2002, as amended (3)

10.4     Incentive  Stock  Option  Plan  (3)

15.1     Letter  on  unedited  interim  financial  statements  (2)

99.1     Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

________________

(1)  Previously  filed  on  Form  10-KSB  for the fiscal year ended December 31,
        2001.

(2)  Incorporated  into  financial  statements  filed  herein.


(3)  To  be  filed  by  amendment.


(b)     Forms  8-K
        ----------

A  Form 8K was filed on September 20, 2002 under "Item 5. Other Events" pursuant
to  which  the  resignations  of  the  following  directors  was reported:  Todd
Sanders,  Michael Iscove and William Bossung.  The resignation of Mr. Bossung as
Chief  Operating  Officer  and  Secretary  was  also  reported.

                                      29
<PAGE>
                                   Signatures
                                   ----------

In  accordance with the requirements of the Securities and Exchange Act of 1934,
as  amended,  the  registrant  has  duly  caused this report to be signed on its
behalf  by  the  undersigned  thereunto  duly  authorized.

                                   Nuway  Medical,  Inc.



Date:  November  18,  2002      /s/  Dennis  Calvert
                                   ------------------------------
                                   By:   Dennis  Calvert
                                           President



Date:  November  18,  2002     /s/  Joseph  Tawil
                                   ------------------------------

                                    Acting  Chief  Financial  Officer
                                    and  Chief  Accounting  Officer



                                      30
<PAGE>
I,  Dennis  Calvert  certify  that:

1.  I  have reviewed this quarterly report on Form 10-QSB of Nuway Medical, Inc.
(Formerly  known  as  Nuway  Energy,  Inc.).

2.  Based  on  my  knowledge,  this quarterly report does not contain any untrue
statement  of a material fact or omit to state a material fact necessary to make
the  statements  made, in light of the circumstances under which such statements
were  made,  not misleading with respect to the period covered by this quarterly
report;

3.  Based  on  my  knowledge,  the  financial  statements,  and  other financial
information  included  in  this quarterly report, fairly present in all material
respects  the  financial  condition, results of operations and cash flows of the
registrant  as  of,  and  for,  the  periods presented in this quarterly report;

4.  The  registrant's  other  certifying  officers  and  I  are  responsible for
establishing  and  maintaining disclosure controls and procedures (as defined in
Exchange  Act  Rules  13a-14  and  15d-14)  for  the  registrant  and  have:

a)  designed  such  disclosure  controls  and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is  made  known  to  us by others within those entities, particularly during the
period  in  which  this  quarterly  report  is  being  prepared;

b)  evaluated  the  effectiveness  of  the  registrant's disclosure controls and
procedures  as  of  a  date  within  90  days  prior  to the filing date of this
quarterly  report  (the  "Evaluation  Date");  and

c) presented in this quarterly report our conclusions about the effectiveness of
the  disclosure  controls  and  procedures  based  on  our  evaluation as of the
Evaluation  Date;

5. The registrant's other certifying officers and I have disclosed, based on our
most  recent evaluation, to the registrant's auditors and the audit committee of
registrant's  board  of  directors  (or  persons  performing  the  equivalent
functions):

a)  all significant deficiencies in the design or operation of internal controls
which  could  adversely  affect  the  registrant's  ability  to record, process,
summarize  and  report  financial  data and have identified for the registrant's
auditors  any  material  weaknesses  in  internal  controls;  and

b)  any  fraud,  whether  or  not  material,  that  involves management or other
employees who have a significant role in the registrant's internal controls; and

6.  The  registrant's  other  certifying  officers  and I have indicated in this
quarterly  report  whether  or  not  there  were significant changes in internal
controls  or  in other factors that could significantly affect internal controls
subsequent  to  the date of our most recent evaluation, including any corrective
actions  with  regard  to  significant  deficiencies  and  material  weaknesses.

Date:  11-18-02
                        /s/ Dennis Calvert
                        ------------------
                           Dennis Calvert - President

                                       31
<PAGE>
I,  Joseph  Tawil  certify  that:

1.  I  have reviewed this quarterly report on Form 10-QSB of Nuway Medical, Inc.
(Formerly  known  as  Nuway  Energy,  Inc.).

2.  Based  on  my  knowledge,  this quarterly report does not contain any untrue
statement  of a material fact or omit to state a material fact necessary to make
the  statements  made, in light of the circumstances under which such statements
were  made,  not misleading with respect to the period covered by this quarterly
report;

3.  Based  on  my  knowledge,  the  financial  statements,  and  other financial
information  included  in  this quarterly report, fairly present in all material
respects  the  financial  condition, results of operations and cash flows of the
registrant  as  of,  and  for,  the  periods presented in this quarterly report;

4.  The  registrant's  other  certifying  officers  and  I  are  responsible for
establishing  and  maintaining disclosure controls and procedures (as defined in
Exchange  Act  Rules  13a-14  and  15d-14)  for  the  registrant  and  have:

a)  designed  such  disclosure  controls  and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is  made  known  to  us by others within those entities, particularly during the
period  in  which  this  quarterly  report  is  being  prepared;

b)  evaluated  the  effectiveness  of  the  registrant's disclosure controls and
procedures  as  of  a  date  within  90  days  prior  to the filing date of this
quarterly  report  (the  "Evaluation  Date");  and

c) presented in this quarterly report our conclusions about the effectiveness of
the  disclosure  controls  and  procedures  based  on  our  evaluation as of the
Evaluation  Date;

5. The registrant's other certifying officers and I have disclosed, based on our
most  recent evaluation, to the registrant's auditors and the audit committee of
registrant's  board  of  directors  (or  persons  performing  the  equivalent
functions):

a)  all significant deficiencies in the design or operation of internal controls
which  could  adversely  affect  the  registrant's  ability  to record, process,
summarize  and  report  financial  data and have identified for the registrant's
auditors  any  material  weaknesses  in  internal  controls;  and

b)  any  fraud,  whether  or  not  material,  that  involves management or other
employees who have a significant role in the registrant's internal controls; and

6.  The  registrant's  other  certifying  officers  and I have indicated in this
quarterly  report  whether  or  not  there  were significant changes in internal
controls  or  in other factors that could significantly affect internal controls
subsequent  to  the date of our most recent evaluation, including any corrective
actions  with  regard  to  significant  deficiencies  and  material  weaknesses.

Date:  11-18-02
                           /s/ Joseph Tawil
                           ----------------
                      Joseph Tawil- Chief Financial Officer


                                      32
<PAGE>